RBI mulls cashless payment options

SHILLONG, March 24: Considering cash transactions are still predominantly high in the country, the Reserve Bank of India (RBI) is driving ahead in implementing measures to promote the use of cashless payment options among people known as the modern payment settlement system which the RBI is operating. “The RBI has been in the forefront both as operator and facilitator for promoting the use of cashless payment instruments in the country,” Executive Director G Padmanabhan, who is also supervising the Department of Payment and Settlement System (PSS) said, adding, “The technology implementation in banks which have shaped the payment system in turn is largely driven by the recommendations of the various committees set up by RBI.” Chief General Manager in charge of the PSS Vijay Chugh said the workshop with the theme “Look Northeast” would enlighten stakeholders on enhancing the “financial inclusion to modern electronic payment system operated by RBI.” “In these two days we have been deliberating with stake holders on the modern electronic Payment Settlement System and other organization which is part of our vision created in turn contributed to capital namely the National Payments Commission of India (NPCI) to handle the retail payment at ground level,” Chugh said. “This bi-annual conference was held in Shillong so that we could get all the stakeholders of the North East including the government agencies to see that all products available to take the system forward, and to understand any other problems that the users and stakeholders find in the system,” Padmanabhan said.

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Task force to study issues

............Stating that it would be a huge challenge to make people shift from paper to electronic transactions, Padmanabhan said, “It is not going to be an easy task. For the last few years, we have been undertaking various outreach programmes to make people even in the remotest corners understand the benefits of banking.”....................

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RBI’s bid to tackle problem of fake notes

SHILLONG: In its bid to deal with the problem of counterfeit currency notes in the country, the Reserve Bank of India (RBI) is embarking upon a plan to create awareness among people about cashless transactions. This was stated by the RBI’s Executive Director G. Padmanabhan while participating in a workshop — Look Northeast-Stakeholders Enhancing financial inclusion through modern electronic payment system – here on Saturday. “The RBI has taken up the challenge to take people on the path of “cashless transaction.” Padmanabhan told newsmen after the workshop. He also pointed out that this would help controlling the fake currency note menace. The RBI has also liberalised norms for banking through mobile phones and electronic transfer of cash. According to Padmanabhan, the system has many advantages – it is faster as well as transparent. While removing the apprehensions that online transaction are not safe, he stated that the system is adequately protected” for transactions. “The RBI would never otherwise encourage people to go for this system. And the norms for consumer protection are clearly laid down,” he said. 

The Shillong Times

Sachin Tendulkar's centuries on currency notes

Pune: Fans all around the globe have patronised the ‘Little Centurion’ in different ways. And city’s Mayur Jain has found his own master stroke to salute the master blaster Sachin Ramesh Tendulkar’s rare feat of 100 tons. The book merchant from Raviwar Peth has a record collection of currency notes of Rs 10 denomination featuring the date of each and every century that Tendulkar has scored so far.............

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Govt mulls setting up dedicated cadre for financial services

...... financial services cadre of, say, 1,000 professionals could be set up and provided with intensive training and global experiences on financial markets. Its personnel could be posted in regulatory agencies such as SEBI, the RBI and also in, the Finance Ministry and rotated among these organisations, Mr R. Gopalan, Economic Affairs Secretary, suggested at a Future of Financial Markets (FOFM) event, organised by the Financial Technologies Group in the Capital.........

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BOB launches 1001 Ultra Small Branches under Financial Inclusion

UCO Bank opens First Ultra Small branch in Odisha

Online fraud: Even RBI not spared

Online scamsters, who earlier used the names of top companies or foreign banks, have now started sending out fake mails, supposedly from the Reserve Bank of India, claiming that the receiver has won 500,000 British pounds. To give a touch of “authenticity” to the fraud mail, the scamsters even have added the photograph of RBI Governor Dr D. Subbarao...........

Read - Deccan Chronicle

Govt may now opt for bond issuances of longer tenures

.... In response to the market borrowing target announced in the Budget, RBI deputy governor H R Khan had said the amount was higher than the current financial year and would be challenging for the central bank. He added RBI would deploy tools such as open market operations, cash reserve ratio and liquidity adjustment facility to manage liquidity conditions......

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RBI's move on rate cuts, oil prices to decide market direction: Pathik Gandotra, IDFC Securities

..... The next big trigger is when RBI starts cutting interest rates. It has almost been like 'Waiting for Godot'. I think what's going to happen is that if you read RBI's commentary just after the budget, they said they were happy with fiscal consolidation. If you read the commentary just before the budget, they had said that once they see signs of fiscal consolidation, they will cut rates. So, I think the next move will be that RBI will cut rates in April and that will be a push to interest rate sensitives. So the next move should be upwards...........

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Good shine, bad sign . . .

......Even as the government trying to quell the ‘yellow' fever, the Reserve Bank of India has applied brakes on non-banking finance companies, which survive by merely lending against gold. Such NBFCs have been asked to maintain a loan-to-value (LTV) ratio not exceeding 60 per cent for loans granted against the collateral of gold jewellery. Given the price volatility in gold, this move is welcome.......

Read - The Hindu

Budget: Who gained, who lost & who got forgotten : S.S.Tarapore

.....At an overall level, the Finance Minister has attempted to address the macroeconomic fallout of fiscal dominance with the greater claims by the government on resources, thereby leaving less flexibility to the Reserve Bank of India ( RBI) to undertake any softening of monetary policy........

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Budget has put the RBI in a spot

........The RBI has been repeatedly cautioning the Government that “credible fiscal consolidation will be an important factor in shaping the inflation outlook.” As the situation has not changed much, it will be too early for the Reserve Bank to take a realistic view on the policy rates in its April review. In fact, the Budget has put the Reserve Bank in a tight spot. The achievement of the twin objectives of monetary policy — economic growth and price stability, which includes financial stability — has been rendered an uphill task.

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WILL RBI BITE THE BULLET NEXT MONTH?

.................. In this complex scenario, it will be interesting to see whether RBI bites the bullet on 17 April when it announces the annual monetary policy for fiscal 2013, although the meaning of this phrase could be totally different for the central bank and the government at this juncture.

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High credit-deposit ratio, agri overdues worry bankers

Near double credit-deposit (CD) ratio, as compared to the Reserve Bank of India’s norm of 60 per cent, and the high overdues position in the agriculture sector in Andhra Pradesh have been the major concerns voiced by the bankers at the State-Level Bankers Committee (SLBC) meeting.................

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RBI, Finance Ministry to finalise market borrowing programme on March 27

The Finance Ministry and the Reserve Bank of India are likely to finalise the market borrowing programme for the first half of the next financial year on March 27…………

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Should you consider banks for a gold loan now?

.......Banks also take a relatively longer time to process a gold loan. This is generally because of the additional paper work and some times because of certain procedural delays and glitches at the back-end.

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Is Dhanlaxmi Bank headed the merger way?

..... "Old private sector banks are struggling to find their role in the economy. With the exception of one or two, the others are facing difficult times. The Reserve Bank of India does not micro-manage, but it will take a decision the day they see the depositors' interest being affected negatively.''........

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